Yahoo Finance New Forecasts: Here's What Analysts Think The Future Holds For Sutro Biopharma, Inc. (NASDAQ:STRO)
Celebrations may be in order for Sutro Biopharma, Inc. (NASDAQ:STRO) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Sutro Biopharma has also found favour with investors, with the stock up a notable 25% to US$6.73 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
After the upgrade, the nine analysts covering Sutro Biopharma are now predicting revenues of US$77m in 2022. If met, this would reflect a major 44% improvement in sales compared to the last 12 months. Losses are forecast to hold steady at around US$2.58. However, before this estimates update, the consensus had been expecting revenues of US$51m and US$2.94 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Sutro Biopharma
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Sutro Biopharma's rate of growth is expected to accelerate meaningfully, with the forecast 107% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 11% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sutro Biopharma to grow faster than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Sutro Biopharma is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Sutro Biopharma's future.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Sutro Biopharma analysts - going out to 2024, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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